Can money supply endogeneity influence bank stock returns? A case study of South Asian economies

This study tests the Post-Keynesian theory regarding bank stock returns and money supply endogeneity in the context of South Asian countries. This study uses panel data set from different sources over twenty-eight (28) years. The research uses different econometric techniques before switching to the...

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Autores principales: Liu, Lingcai, Bashir, Taqadus, Abdalla, Alaa Amin, Salman, Asma, Ramos-meza, Carlos Samuel, Jain, Vipin, Shabbir, Malik Shahzad
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer Netherlands 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9805347/
https://www.ncbi.nlm.nih.gov/pubmed/36618554
http://dx.doi.org/10.1007/s10668-022-02867-6
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author Liu, Lingcai
Bashir, Taqadus
Abdalla, Alaa Amin
Salman, Asma
Ramos-meza, Carlos Samuel
Jain, Vipin
Shabbir, Malik Shahzad
author_facet Liu, Lingcai
Bashir, Taqadus
Abdalla, Alaa Amin
Salman, Asma
Ramos-meza, Carlos Samuel
Jain, Vipin
Shabbir, Malik Shahzad
author_sort Liu, Lingcai
collection PubMed
description This study tests the Post-Keynesian theory regarding bank stock returns and money supply endogeneity in the context of South Asian countries. This study uses panel data set from different sources over twenty-eight (28) years. The research uses different econometric techniques before switching to the generalized method of moments (GMM). The empirical results indicate a significant positive effect of net interest rate margins on bank loans in South Asian countries, whereas a positive relationship exists between foreign to local interest rates and the money supply. The findings depict that positive associations exist between inflation and money supply of banks, and between the money supply and bank stock returns. More specifically, the GMM results show that the money supply has positively affected the stock prices of banks suggesting strong policies for the stakeholders of these economies for the sake of economic growth and sustainable development.
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spelling pubmed-98053472023-01-04 Can money supply endogeneity influence bank stock returns? A case study of South Asian economies Liu, Lingcai Bashir, Taqadus Abdalla, Alaa Amin Salman, Asma Ramos-meza, Carlos Samuel Jain, Vipin Shabbir, Malik Shahzad Environ Dev Sustain Review This study tests the Post-Keynesian theory regarding bank stock returns and money supply endogeneity in the context of South Asian countries. This study uses panel data set from different sources over twenty-eight (28) years. The research uses different econometric techniques before switching to the generalized method of moments (GMM). The empirical results indicate a significant positive effect of net interest rate margins on bank loans in South Asian countries, whereas a positive relationship exists between foreign to local interest rates and the money supply. The findings depict that positive associations exist between inflation and money supply of banks, and between the money supply and bank stock returns. More specifically, the GMM results show that the money supply has positively affected the stock prices of banks suggesting strong policies for the stakeholders of these economies for the sake of economic growth and sustainable development. Springer Netherlands 2022-12-31 /pmc/articles/PMC9805347/ /pubmed/36618554 http://dx.doi.org/10.1007/s10668-022-02867-6 Text en © The Author(s), under exclusive licence to Springer Nature B.V. 2022, Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Review
Liu, Lingcai
Bashir, Taqadus
Abdalla, Alaa Amin
Salman, Asma
Ramos-meza, Carlos Samuel
Jain, Vipin
Shabbir, Malik Shahzad
Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title_full Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title_fullStr Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title_full_unstemmed Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title_short Can money supply endogeneity influence bank stock returns? A case study of South Asian economies
title_sort can money supply endogeneity influence bank stock returns? a case study of south asian economies
topic Review
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9805347/
https://www.ncbi.nlm.nih.gov/pubmed/36618554
http://dx.doi.org/10.1007/s10668-022-02867-6
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